Tanzania's pension funds urged to invest in sugar sector

A sugar storage facility in Dar es Salaam. PHOTO | FILE 

By APOLINARI TAIRO

In Summary

• Social Security Regulatory Authority director general Irene Isaka told The EastAfrican that under the SSRA regulations, pension schemes are being encouraged to invest in any viable business to generate more profits for their members.

Tanzania's pension funds are targeting agro-industries to raise the annual production of sugar.

The government has directed social security providers with a strong capital base to invest in the sugar industry to plug a shortage in the country.

Meeting in Arusha last week, pension funds managers resolved to invest in sugar production to save the local currency from effects of huge import bill.

Section 26 (4)  of the Social Security Regulatory Authority Act gives pension schemes powers to invest in any viable investment.

The law

It says: “Subject to provisions of this Act and guidelines issued by the Bank (Bank of Tanzania), a scheme, manager, administrator or custodian shall invest moneys in any viable venture and financial instruments as they may consider appropriate.”

SSRA director general  Irene Isaka told The EastAfrican that under the SSRA regulations, pension schemes are being encouraged to invest in any viable business to generate more profits for their members.

Prime Minister Kassim Majaliwa said Tanzania needed more than 420,000 tonnes of sugar per year.

Mr Majaliwa during Arusha meeting with pension funds managers that the government was working round the clock to end the sugar shortage.

He noted that social security institutions hold a sound capital base with total investments worth Tsh11 trillion ($5.5 billion).